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Shoprite misses sales target
RETAILER NEWS
Fin24 - Jul 17th, 08:59
Johannesburg - Africa's biggest grocer Shoprite [JSE:SHP] Holdings missed estimates with a 12.1% rise in full-year sales, reflecting a slowdown in spending that sent its shares sharply down on the Johannesburg bourse on Tuesday.
Shoprite said sales came in at R92.7bn in the year to end-June, below the R95bn rand mean estimate in a Reuters poll of 10 analysts.
"The growing pressure on consumers' disposable income reflects in the slow-down in sales in the South African supermarket division," it said in a statement.
After more than two-years as investors' favourites, retailers in South Africa are quickly losing their lustre as debt-fuelled consumer spending stalls.
Shares in Shoprite, which are down about 10% so far this year, skidded 5.5% to R180.64 by mid day trade, on course for their biggest daily decline in more than six months.
The stock would have to fall by another 11% to meet what Thomson Reuters StarMine estimates as a level that justifies Shoprite's most likely earnings trajectory over the next five years.From Fin24.com
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Shoprite Holdings LtdThe Shoprite Group of Companies, Africa's largest food retailer, operates 1334 corporate and 406 franchise outlets in 17 countries across Africa and the Indian Ocean Islands, and reported turnover of R82,731 billion for the year ended June 2012. The ...Click here to read more about Shoprite Holdings Ltd |
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